COMPXM ROUND 2 GUIDE | 2025 – 2026
Hello, and welcome back to the CompXM 2025–2026 Simulation Series.
In this video, I’ll guide you through the Top 10 Winning Tips for Round 2 of the CompXM exam. If you’ve already completed Round 1, congratulations! Now it’s time to build on that foundation and push for even stronger performance.
Let’s dive right into Round 2 — and walk step-by-step through each decision area, just like we did in Round 1.
✅ 1. Review What You Did in Round 1
In Round 1, you should have developed four new products, one for each market segment — Traditional, Low End, High End, and Performance (or Trip, Core, Nano, and Elite depending on your interface).
These new products should have been properly positioned using data from the Industry Conditions Report and calculations based on Table 3.
Now in Round 2, our first job is to update these products again — but using the new ideal positions and drift values.
📊 2. Use Table 2 + Table 3 (Updated Version)
Before updating your product R&D, you need to recalculate the ideal position for each segment.
- Table 2 shows the segment details: size, performance, age range, and price.
- Table 3 includes drift rates — how customer expectations shift each round.
👉 Download the FREE Excel forecast template to combine Table 2 + Table 3. This allows you to project the new ideal spot for Round 2.
Once you’ve calculated the new ideal spots, update your product specifications in the R&D section to match these new values. This helps keep your product near the center of the customer demand circle — and maximizes sales.
🧠 3. Don’t Copy Numbers – Learn the Strategy
Important reminder: CompXM is personalized. Every student has a unique set of numbers, names, and market data.
👉 Do not copy the product values or prices from any video, including this one.
Instead, learn the method:
- Use the Industry Conditions Report
- Analyze Table 3 drift values
- Apply calculations using Excel or by hand
- Update your decisions based on your version of the simulation
💰 4. Set Marketing: Pricing, Promotion, and Sales
Now let’s move to the Marketing section.
- Price: Reduce the price by about $0.50 from Round 1, depending on customer trends. You want to stay competitive but still maintain a good margin.
- Promotion & Sales Budget:
- Low End & Traditional: ~$2000 each
- High End & Performance: ~$1400–$2000
These budgets help raise awareness and accessibility scores. Round 2 is still early in the game, so strong investment here will pay off in Rounds 3 and 4.
📈 5. Forecast Sales Volume Accurately
Now comes one of the most critical parts: Sales Forecasting.
To do this, follow this process:
- Look at last round’s actual sales volume for each product.
- Check how much inventory was left (if any).
- Apply the segment’s growth rate to project future demand.
👉 Use the Excel file or a calculator to run your numbers.
Then, go to the Production module and input the forecasted demand, adjusting for:
- Inventory left over
- New demand
- Any new products launched
🏭 6. Adjust Production: Capacity and Automation
Once your forecast is done, go ahead and plan your production.
Here’s what to do:
- Adjust production to meet forecasted sales + inventory buffer
- Make sure you don’t overproduce (leads to wasted cost)
- Make sure you don’t underproduce (you lose sales)
Buy more capacity for new or growing products — this helps avoid bottlenecks in future rounds.
Recommended automation levels:
- Low End: increase to ~6.0
- Traditional: ~5.0–5.5
- High End & Performance: ~4.0–5.0 (be careful — too much automation limits repositioning flexibility)
👥 7. Human Resources: Train and Recruit
A strong workforce gives you long-term cost efficiency.
In Round 2, make the following decisions in the HR Module:
- Recruiting Spend: $5,000
- Training Hours: 80
This will improve your productivity index and reduce labor cost per unit — a smart investment early in the simulation.
💵 8. Finance Decisions: Fund Smartly
Now, let’s move to Finance.
Round 2 funding needs will be higher because you’re:
- Investing in marketing
- Increasing production capacity
- Launching TQM initiatives
To fund operations:
- Issue Stock: ~$40,000
- Borrow Long-Term Debt: ~$15,000
- Borrow Current Debt: ~$15,000
Aim to keep a cash balance of $75–80 million to avoid emergency loans. These loans will ruin your financial ratios and investor confidence.
⚙️ 9. Launch TQM (Total Quality Management)
Now is a good time to start TQM investment.
In Round 2:
- Spend $1,000 on each initiative
- Prioritize initiatives that:
- Improve R&D cycle time
- Reduce material costs
- Improve demand forecasting
TQM takes a few rounds to show results, so the earlier you start, the better.
📊 10. Analyze Results and Plan Ahead
After submitting your decisions, check the Pro Forma Income Statement and Balance Sheet.
Compare Round 2 performance to Round 1:
- Sales: In Round 1, maybe you earned $17M. In Round 2, you should see a jump to $27M or more.
- Profit: In Round 1, maybe $4M. In Round 2, aim for $6–8M+.
- Contribution Margin: Keep increasing — aim for 35–40% in Round 2, 50%+ by Round 4.
- Stock Price & ROE: Look for strong improvement in financial KPIs.
The key is momentum. If your sales and profit keep increasing, you’re on the right path.
🔁 Recap: Round 2 Strategy in 10 Steps
Let’s summarize everything:
- Review Round 1 performance and decisions
- Use the Industry Conditions Report and Tables 2–3 to calculate Round 2 ideal positions
- Update product specs in R&D
- Lower price slightly and increase marketing spend
- Forecast demand using last year’s data and segment growth
- Match production to forecast + add capacity + increase automation
- Max HR investment: $5,000 recruiting + 80 hours training
- Fund growth using stock, long-term, and current debt
- Launch TQM — $1,000 per initiative
- Compare actual vs projected performance; refine strategy for Round 3
📬 Need Help?
If you need FREE support for Round 1 or Round 2, send your questions to:
We’ll help you review your strategy and fix mistakes early — while there’s still time to recover and score high.
Also, visit our blog for downloadable Excel templates and more tips:
🔗 https://compxmguide2022.blogspot.com
Don’t forget to watch the next video for Round 3 & 4 strategy — where we go deeper into profitability, financial controls, and long-term positioning.
🎉 Thank you for watching, and good luck on your CompXM exam! Let’s aim for that 999/1000 score together.
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